HB 36: Catoosa County; ad valorem tax; provide homestead exemption

This bill applies only to Catoosa County. It would create a homestead exemption from county ad valorem taxes (property taxes) for homeowners in a special tax district covering the whole county. The size of the exemption each year would depend on how much money comes in from a new Local Homestead Option Sales Tax (LHOST), a 1 percent sales tax that would be collected in the district from January 1, 2028 through December 31, 2037. Homeowners would need to apply once with the county tax official, and the exemption would then renew automatically each year as long as they stay eligible. The exemption would stack on top of any other homestead exemption a homeowner already has. Because it affects local taxing power, the bill needs a two-thirds vote in both chambers of the General Assembly and must then be approved by Catoosa County voters in a November 2026 referendum. If approved, the tax break would run from January 1, 2027 through December 31, 2039; if rejected or if the election is not held, the whole Act would automatically repeal about a year after the election date.

• Creates a new homestead exemption from all Catoosa County property taxes, sized each year to match the revenue collected from a new 1 percent local sales tax.
• Requires homeowners to apply once for the exemption with the county tax official, after which it renews automatically each year without a new application.
• Sets the new sales tax to run from January 1, 2028 through December 31, 2037, and the exemption to apply from 2027 through December 31, 2039.
• Requires a countywide referendum in November 2026 before the exemption can take effect, and automatically repeals the entire Act if voters reject it or no election is held.
• Requires a two-thirds vote of the Georgia House and Senate to pass, per the state constitution's rules for special local tax exemptions.

Homeowners in Catoosa County who claim a homestead exemption, the Catoosa County tax commissioner's office that processes applications, county election officials who must run the November 2026 referendum, and Catoosa County shoppers who would pay the new 1 percent sales tax.

If voters approve it, homeowners in Catoosa County would see part of their home's assessed value shielded from county property taxes, funded instead by a new penny sales tax collected countywide through 2037. Renters and non-homeowners would not get the exemption but would still pay the added sales tax.

• Section 1 defines the exemption amount as the assessed value covered by net proceeds from the new sales tax (LHOST) and limits it to county-levied taxes, applying only within the special district conterminous with Catoosa County.
• Section 1(c) and (d) set application procedures, allowing automatic renewal for people who already had another homestead exemption in the prior year without reapplying.
• Section 1(e) makes clear the exemption stacks on top of, rather than replacing, any other homestead exemption and runs from the year after voter approval through December 31, 2039.
• Section 1(f) sets the new sales tax period from January 1, 2028 through December 31, 2037.
• Section 3 requires a two-thirds majority vote in both the House and Senate for the bill to become law, under the Georgia Constitution's rules for such local tax measures.
• Section 4 calls for a countywide referendum on the Tuesday after the first Monday in November 2026, with automatic repeal of the entire Act 365 days after the election if voters reject it or no election occurs.
• Section 4(c) allows any Catoosa County voter to seek a court order (writ of mandamus) forcing the election superintendent to hold the vote if it is not conducted as required.

1. 2026-06-22House Lost Reconsidered Bill/Resolution (House)
2. 2026-06-22House Reconsidered (House)
3. 2026-06-20House Notice to Reconsider (House)
4. 2026-06-20House Third Reading Lost (House)
5. 2026-06-20House Third Readers (House)
6. 2026-06-20House Committee Favorably Reported (House)
7. 2026-06-18House Second Readers (House)
8. 2026-06-17House First Readers (House)

• Mitchell Horner (R, HD-003)Primary sponsor
• Steve Tarvin (R, HD-002)

1. PassedHouse voteJune 20, 2026

   95 yea, 67 nay (5 not voting, 12 absent)

   Local Calendar : House Vote #5

2. PassedHouse voteJune 22, 2026

   97 yea, 75 nay (1 not voting, 6 absent)

   Local Calendar: House Vote #9

3. PassedHouse voteJune 22, 2026

   99 yea, 74 nay (1 not voting, 5 absent)

   Local Calendar : House Vote #10

• property taxes
• homestead exemption
• Catoosa County
• local sales tax
• referendum